Anil Agarwal's Volcan Investments backs out of Jet Airways EoI
13 Aug 2019
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Anil Agarwal-led Volcan Investments has decided to withdraw its expression of interest (EoI) for acquiring grounded carrier Jet Airways after reckoning that the airline’s partner Etihad had also declined to bail out Jet Airways.
Volcan Investments submitted an EoI for a stake in the airline on Saturday, the last day for submitting EoIs.
"The EoI for Jet Airways by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further," a statement issued by the Agarwal's family trust-led Volcan said.
Etihad is reported to have unresolved issues concerning Jet’s liabilities. Etihad had earlier presented a conditional expression of interest to reinvest in Jet as a minority stakeholder, with an agreed partner, but unfortunately this did not materialise.
Mumbai-based Hinduja Group was earlier reported to partner Etihad to propose an EoI for the airline.
Jet airwats promoter Naresh Goyal held 51 per cent stake in the airline while the Abu Dhabi-based airline held 24 per cent stake in the airline.
The Resolution Professional (RP) appointed for Jet Airways had, earlier, set a deadline of 3 August. Since the RP did not receive any EoIs, the last day to submit the bid the EoI was extended to 10 August.
Investors, including Hinduja, Etihad, Apollo Tyres, AdiGro, among others were reported to have shown interest in buying Jet Airways’ assets though formal bids are yet to be placed by anyone.
The lead lender for Jet Airways, State bank of India (SBI), dragged the airline to the NCLT to recover dues. Ashish Chhawchharia, the debt resolution professional (RP), had received 16,643 claims worth Rs24,888 crore from financial, operational and other creditors. Only claims of 33 financial creditors worth Rs8,463 crore had been admitted.
According to sources, the company’s assets included 6 Boeing 777s, three Boeing 737s and 2 A330s, along with engineering spare parts, and a few properties.
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